Lecture 2
Competitive Market
Equilibrium:
The Forces of
Demand and Supply
Where Prices Come From:
The Interaction of Demand and Supply
Perfectly Competitive Market A market
that meets the conditions of
(1) many buyers and sellers,
(2) all firms selling id

Macroeconomics
Basic concepts
Introducing the course
The whole of the science is nothing more
than the refinement of everyday thinking.
Albert Einstein
Learning Objectives
This chapter introduces you to
n the issues macroeconomists study
n the tools macro

Lecture 1
Fundamental Concepts
of
Economics
Economics
4.1
Economics The study of the choices
people make to attain their goals,
given their scarce resources.
Scarcity A situation in which unlimited
wants exceed the limited resources
available to fulfill t